ASCENDAS HOSPITALITY TRUST 1Q FY2019 Financial Results Presentation - PowerPoint PPT Presentation

ASCENDAS HOSPITALITY TRUST 1Q FY2019 Financial Results Presentation 1 August 2019

Disclaimer This presentation shall be read in conjunction with A- HTRUST’s Unaudited Financial Results for the First Quarter ended 30 June 2019 (“ 1Q FY2019 ”), copies of which are available on www.sgx.com or www.a-htrust.com. This presentation may contain forward-looking statements that involve risks and uncertainties. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements as a result of a number of risks, uncertainties and assumptions. Representative examples of these factors include (without limitation) general industry and economic conditions, interest rate trends and foreign exchange rate trends, cost of capital and capital availability, competition from similar developments, shifts in expected levels of average daily room rates and occupancy, changes in operating expenses, including employee wages, benefits and training, property expenses and governmental and public policy changes and the continued availability of financing in the amounts and the terms necessary to support future business. Investors are cautioned not to place undue reliance on these forward looking statements, which are based on the Managers’ current view of future events. The Australian Dollar, Japanese Yen, Korean Won and Singapore Dollar are defined herein as “AUD”, “JPY”, “KRW” and “SGD” or “S $ ”, respectively. Any discrepancies in the figures included herein between the individual amounts and total thereof are due to rounding. 2

Content 1. Financial Review 2. Portfolio Performance 3. Capital Management 4. Looking Ahead 3

1. Financial Review ibis Ambassador Seoul Insadong, Seoul, South Korea

Financial Review Results Summary – 1QFY2019 1 st Quarter S$’ million FY2019 1 FY2018/19 Change 2 • Full quarter contribution from all Gross 46.5 44.9 3.5% five newly acquired hotels Revenue 3 • Partially offset by lower Net Property Income 3 21.3 18.7 13.6% contribution from Australia portfolio which was impacted by NPI Margin (%) 45.7 41.6 4.1pp weaker AUD against SGD Income available for 15.6 16.4 (5.1)% distribution - Operations 15.6 14.6 6.4% • Excluding the partial distribution of - Proceeds from Divestment - 1.8 - proceeds from the sale of hotels Income available for in China of the corresponding 14.6 15.3 (4.8)% distribution net of retention 4 quarter last year, DPS would increased by 6.7% y-o-y from 1.20 DPS (cents) 4 1.28 1.35 (5.2)% cents in 1Q FY2018/19 Adjusted DPS (cents) 1.28 1.20 5 6.7% 1. The current financial year end will be a 9-month period from 1 April 2019 to 31 December 2019 following the change of financial year end to 31 December. 2. Save for DPS, percentage changes are based on figures rounded to nearest thousands. 3. Gross revenue and net property income for the corresponding period last year excluded contribution from the China portfolio, which was divested on 18 May 2018. Including contribution from the China portfolio, gross revenue and NPI for 1Q FY2018/19 were S$48.2 million and S$20.2 million, respectively. 4. Retention of distributable income for 1Q FY2019 and 1Q FY2018/19 was 6.7% and 7.0% respectively. 5 5. Excluding the partial distribution of proceeds from the sale hotels in China.

Financial Review Distribution History 1.77 1.72 30.0 1.80 1.60 1.46 1.45 1.42 1.41 25.0 1.35 1.31 1.40 1.28 Distributable Income (S$ million) 1.45 1.40 1.32 20.0 1.20 DPS (Singapore cents) 20.1 1.20 19.5 1.00 16.6 16.5 16.5 15.0 16.1 16.0 15.9 15.3 14.9 14.7 14.6 0.80 13.6 10.0 0.60 0.40 5.0 0.20 0.0 0.00 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY2017/18 FY2018/19 FY2019 Distributable Income DPS Distributable Income DPS (excluding Proceeds (excluding Proceeds from Divestment 1 ) from Divestment 1 ) 1. Excluding the partial distribution of proceeds from the divestment of Novotel Beijing Sanyuan and ibis Beijing Sanyuan. 6

2. Portfolio Performance Pullman and Mercure Brisbane King George Square, Brisbane, Australia

Portfolio Performance Performance by Country Gross Revenue Net Property Income 40.0 10.0 3.1% 9.1 3.9% 8.8 34.3 32.9 22.8% 8.0 7.2 30.0 5.9 6.0 S$ million S$ million 20.0 0.1% 4.0 3.3 3.3 19.0% >300% 8.2 10.0 1.9 6.9 0.3% 2.0 1.5 >300% 3.3 3.3 3.3 2.1 0.4 0.4 0.0 0.0 Australia China Japan Korea Singapore Australia China Japan Korea Singapore 1Q FY18/19 1Q FY19 1Q FY18/19 1Q FY19 • Full-quarter contribution from all five hotels acquired in FY2018/19. • Australia portfolio impacted by weaker AUD against SGD. 8

Portfolio Performance Added income stability 1Q FY2018/19 Net Property Income 1Q FY2019 Net Property Income Master Leases Master Leases 48% 59% Singapore Singapore 16% 16% Korea 2% Korea Australia 9% Australia 41% 45% Japan 29% Japan Management Management Contracts Contracts 34% China 52% 41% 7% • The five hotels acquired in FY2018/19 are all under master leases and have contributed on a full-quarter basis in 1Q FY2019, resulting in added stability to the overall income of the trust. 9

Portfolio Performance Australia – Respite amidst headwinds Net Property Income in AUD Net Property Income in SGD +2.1% -3.1% 17.5 1.200 15.0 SGD/AUD: 1.010 1 SGD/AUD: 15.0 0.961 1 (-5%) 12.5 0.800 10.0 9.2 9.0 AUD million SGD / AUD S$ million 10.0 9.1 8.8 7.5 5.0 0.400 5.0 2.5 0.0 0.0 0.000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY17/18 FY18/19 FY19 FY17/18 FY18/19 FY19 • Headwinds in Sydney and Melbourne markets resulted in RevPAR decline of 2.2% y-o-y. Despite the challenges, the performance of Pullman Sydney Hyde Park improved on the back of stronger conference and events business during the quarter. • Hotel in Melbourne received refund of land tax surcharge to post higher NPI, while performance of Brisbane hotel improved driven by growth in both occupancy and average room rates. 1. Based on average rate used for the respective quarter. 10

Portfolio Performance Japan – Acquisitions drive growth Net Property Income in JPY Net Property Income in SGD SGD/JPY: SGD/JPY: 0.012 1 +22.2% +22.8% 0.012 1 (+0%) 10.0 700.0 0.012 589.8 600.0 8.0 0.010 7.2 482.6 500.0 5.9 0.008 6.0 JPY million S$ million SGD / JPY 400.0 0.006 4.0 300.0 0.004 2.0 200.0 0.002 100.0 0.0 0.000 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY17/18 FY18/19 FY19 FY17/18 FY18/19 FY19 • The contribution from Japan portfolio in 1Q FY2019 was boosted by full-quarter contribution from the three WBF-branded hotels acquired in FY2018/19, as NPI grew by 22.2% y-o-y in JPY term. • During the quarter, Hotel Sunroute Osaka Namba was rebranded as Sotetsu Grand Fresa Osaka-Namba, with no change to the terms of master lease, as the operator seeks to market the hotel as a premium product. 1. Based on average rate used for the respective quarter. 11

Portfolio Performance South Korea – Added income stability Net Property Income in KRW Net Property Income in SGD SGD/KRW: 0.0012 1 (-5%) +>300% +>300% 2.5 1,800.0 1,615.6 0.0012 1,600.0 SGD/KRW: 2.0 0.0012 1 1.9 0.0010 1,400.0 1,200.0 0.0008 1.5 KRW million SGD / KRW S$ million 1,000.0 0.0006 800.0 1.0 600.0 0.0004 336.8 400.0 0.5 0.4 0.0002 200.0 0.0 0.0 0.0000 1Q 2Q 3Q 4Q 1Q 1Q 2Q 3Q 4Q 1Q FY18/19 FY19 FY18/19 FY19 • Full-quarter contribution from both The Splaisir Seoul Dongdaemun and ibis Ambassador Seoul Insadong resulted in the NPI from South Korea improving by more than 3 times compared to the same quarter last year. • The underlying performance of both hotels improved as RevPAR of the two hotels increased by approximately 10% y-o-y on average. 1. Based on average rate used for the respective quarter. 12

Portfolio Performance Singapore – Master lease mitigates downside Net Property Income in SGD +0.1% 4.0 3.3 3.3 3.0 S$ million 2.0 1.0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q FY17/18 FY18/19 FY19 • The underlying performance of the hotel was affected by lower transient and corporate business during the quarter. • However, this was mitigated by the master lease arrangement and the contribution from the Park Hotel Clarke Quay was relatively stable compared to the corresponding quarter last year. 13

3. Capital Management Park Hotel Clarke Quay, Singapore

Capital Management Prudent capital management As at As at 30 June 2019 31 March 2019 Borrowings (S$ m) 646.8 643.6 Total Assets (S$ m) 1,909.6 1,938.4 A-HTRUST Gearing (%) 34.1 33.2 - A-HREIT Gearing (%) 35.6 35.0 - A-HBT Gearing (%) 1 32.6 31.7 A-HTRUST Interest Cover (times) 2 12.8 12.7 Average interest rate (%) 1.9 2.0 Weighted average debt to maturity (years) 3.5 3.8 Net asset value per stapled security (S$) 0.99 1.02 1. Does not include SFRS(I) 16 Leases accounting adjustments recorded in A- HBT’s financial statements. 15 2. Blended basis, computed based on earnings before interest, tax, depreciation and amortisation over interest expenses.